- Net Income: WEG reported a net income of R$1.65 billion, exceeding expectations with a 4.5% year-over-year increase.
- Estimates Beaten: The net income surpassed the estimate of R$1.62 billion.
- Net Operating Revenue: Total net operating revenue was R$10.27 billion, growing 4.2% from the previous year but falling short of the estimated R$10.41 billion.
- Domestic Market Revenue: Revenue from the domestic market rose 3.1%, reaching R$4.00 billion.
- External Market Revenue: The external market contributed R$6.27 billion in net operating revenue.
- EBITDA: EBITDA was reported at R$2.28 billion, marking a 2.3% increase year-over-year, in line with the estimate.
- EBITDA Margin: The EBITDA margin stood at 22.2%.
- Return on Invested Capital: This metric rose to 32.4%, exceeding the expected 29.4%.
- Analyst Recommendations: There are 6 buy ratings, 7 hold ratings, and 3 sell ratings on WEG’s stock.
A look at WEG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
WEG S.A., a company that manufactures industrial machinery, is positioned for a promising long-term outlook based on its Smartkarma Smart Scores. With a solid Growth score of 4 and an impressive Resilience score of 5, WEG demonstrates strong potential for future expansion and ability to withstand market challenges. While the Value and Dividend scores are more moderate at 2 each, indicating room for improvement in these areas, the company’s Momentum score of 3 suggests a steady upward trajectory in its performance. Overall, WEG appears to be a well-rounded company with high resilience and growth potential in the industrial machinery sector.
WEG S.A.’s focus on manufacturing and distributing electric motors, transformers, generators, and other industrial products aligns with its positive outlook reflected in the Smartkarma Smart Scores. The company’s emphasis on technical assistance and repair services further enhances its appeal to customers. With a mix of strengths in Growth and Resilience, WEG is positioned to capitalize on future opportunities and navigate any industry challenges effectively. While there is room for improvement in Value and Dividend scores, the company’s overall profile indicates a promising future for investors seeking exposure to the industrial machinery market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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